The Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI) held multiple public hearing sessions (three in English language and one in Arabic language) over the period from January to December 2024 via video conferencing, on the exposure draft of its financial accounting standard FAS “Financial Reporting for Islamic Investment Institutions (including Investment Funds)” in collaboration with certain organisations and stakeholders within the Islamic finance industry and other relevant sectors.

The objective of the standard is to set out the principles of financial reporting for Islamic investment institutions (IIIs), particularly prescribing overall requirements for the presentation, minimum contents and recommended structure of their financial statements in a manner that facilitates truthful and fair presentation in line with Shari’ah principles and rules.

Throughout these sessions, the exposure draft’s content and structure were introduced. The sessions included an engaging Q&A round, where participants raised questions, shared feedback, and received responses and clarifications to their questions and comments.

Approximately 400 professionals and practitioners participated in the sessions from various areas, including Islamic finance, Shari’ah, accounting, auditing, consulting, and academia.

AAOIFI acknowledges and appreciates the contributions of industry professionals and subject matter experts at different levels. All feedback gathered from the industry, including inquiries, observations, proposals, and recommendations, will be submitted to the respective working group which will, in turn, forward the same to AAOIFI’s Accounting Board (AAB) for its consideration. The anticipated release of the final standard is projected for the fourth quarter of 2024.

For the English version of exposure draft, please click on: Link

For the Arabic version of the exposure draft, please click on: Link